SES: 5% growth despite German ASO

October 23, 2009

Satellite operator SES says it expects revenues to grow at a rate of 5% over the next few years despite the analogue switch off of services in the German market.

Announcing its results for the first nine months of the year the Luxembourg-based operator said it expected the bulk of the analogue DTH transmissions in Germany to cease in 2012. The Astra satellite system at 19 degrees East still carries close to 40 analogue channels, the vast majority in the German language, and the operator will be looking to further growth in HD services to make up the short fall.

In the short term SES is continuing to offer recurring revenue guidance in a range between 3% and 4%, but volatility in some services acivities may push this down to 1.5%.

“SES delivered a solid core infrastructure performance, underlining the resilience of our business model. EBITDA growth was in line with our expectations, while top line revenue progression was reduced due to timing of revenue recognition on certain large service contracts,” commented Romain Bausch, President and CEO of SES.

Reported revevenue was up 5.4% to €1,259.7 million, while EBITDA rose 8.2% to €901.1 million.